That 40 bucks covers equipment cost AND your first ingredient kit (sans 2 gallon pot, strainer, thermometer, and bottling supplies). They have quite a few ingredient kits available to brew more at about $15 which is still high for a gallon of AG (but from there, one could order ingredients scaled down from NB or others at a fraction). Its a great intro and starts a novice directly into AG brewing. I do not believe that many would stay long with that system, but the space challenged in the inner city might, or they may go 3 gallon BIAB from there (the technique would not be very different to them). Thing is, they will have a bit of AG experience and will have figured out their mistakes after a few batches of their brew. The biggest advantages I see with starting that way are that tossing a one gallon batch after a few weeks is alot easier than dumping 5 on the psyche if something goes terribly wrong. And the irrational fear of AG brewing and very understandable fear of taking the leap (lets face it, mash tuns, racks, bigger kettles, banjo burners, plate chillers, etc are a big commitment of scale, cost, and space in the 10 gallon batch size that we all end up going to.) are bypassed. New brewers would easily advance from the 1 gallon system to 3 gallon batches of BIAB without undo learning curves or financial or spacial impact. If you live in the country this may not sound like a big deal, but if you live on the 12th floor of an apartment building in New York it is. It also works if you have a less than enthusiastic spouse.
I think I am gonna buy this system for my new Son In Law this year. I’ll pick up the extra stuff he will need too. He (and my daughter) loves craft beers, likes to try different styles and loves my home brew. They live in a small third floor apt in Boston (paying brutal rent, Boston real estate prices are unworldly) so this system will let them brew those small batches with minimal space requirements.